driving the future of mobility - continental usa · 7/6/2018 · agenda 4 continental strategy –...
TRANSCRIPT
![Page 1: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/1.jpg)
Bitte decken Sie die schraffierte Fläche mit einem Bild ab.Please cover the shaded area with a picture.
(24,4 x 7,6 cm)
Driving the Future of MobilitydbAccess Berlin Conference 2018
Wolfgang Schaefer – CFO
Ticker: CONADR-Ticker: CTTAYTwitter: @Continental_IRhttp://www.continental-ir.com
![Page 2: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/2.jpg)
Agenda
Continental Strategy – Outlook 2020 and Beyond4 22
Results Q1 2018 and Outlook 20181 3
Trends in the Sector of the Automotive Group2 10
Trends in the Sector of the Rubber Group3 17
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 2
![Page 3: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/3.jpg)
› Sales slightly up to €11.0 bn; organic sales growth at 4.3%; FX negative at €546 mn
› Adj. EBIT1 down by 9% to €1.1 bn; adj. EBIT1 margin at 9.7%(PPA2 -€42 mn and special effects -€6 mn)
› NIAT3 amounted to €738 mn, down by 2%› Free cash flow amounted to €41 mn
Free cash flow before acquisitions amounted to €186 mn
› Gearing ratio improved to 12% and equity ratio to 44%› Value creation: trailing ROCE4 down to 19.8%
› Other topics:› Order intake in the Automotive Group increased to €11 bn in Q1 2018
› Change in outlook announced on April 18, 2018
1) Results Q1 2018Most Important KPIs for Q1 2018
1 Before amortization of intangibles from PPA, consolidation and special effects2 Amortization of intangibles from PPA3 Attributable to the shareholders of the parent4 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets for the LTM
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 3
![Page 4: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/4.jpg)
9,851 10,191 9,98410,524
11,000 11,033 10,69311,284 11,013
1,164 1,059
Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18
Sales (€ mn) Adj. EBIT (€ mn)
1) Results Q1 2018Sales and Adjusted EBIT1 by Quarter
1 Before amortization of intangibles from PPA, consolidation and special effects
FY Sales €40,549 mn FY Sales €44,009 mn Q1 Sales €11,013 mnAdj. EBIT1 €1,059 mn
1
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 4
![Page 5: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/5.jpg)
3,85
2
4,04
5
4,03
8
4,16
4
4,26
0
4,38
2
4,36
1
4,49
1
4,21
2
635 531
Q1/
16
Q2/
16
Q3/
16
Q4/
16
Q1/
17
Q2/
17
Q3/
17
Q4/
17
Q1/
18
Q2/
18
Q3/
18
Q4/
18
Sales (€ mn) Adj. EBIT (€ mn)
6,01
1
6,15
8
5,95
8
6,37
0
6,75
4
6,66
1
6,34
4
6,80
6
6,81
4557 563
Q1/
16
Q2/
16
Q3/
16
Q4/
16
Q1/
17
Q2/
17
Q3/
17
Q4/
17
Q1/
18
Q2/
18
Q3/
18
Q4/
18
Sales (€ mn) Adj. EBIT (€ mn)
1) Results Q1 2018Automotive Group and Rubber Group by Quarter
1
Automotive Group Rubber Group
1 Before amortization of intangibles from PPA, consolidation and special effects
1
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 5
![Page 6: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/6.jpg)
1) Results Q1 2018Net Indebtedness and Gearing Ratio
2,8243,542
2,798 2,7683,469 3,298
2,048 1,98426% 27%19% 18%
23% 21%13% 12%
YE YE YE Q1 H1 9M YE Q1
2014 2015 2016 2017 2018
Net indebtedness (€ mn) Gearing ratio
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 6
![Page 7: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/7.jpg)
750500
1,350
2018 2019 2020 2021 2022
1) Results Q1 2018Maturities for Bonds1 (€ mn)
Bonds1 All amounts shown are nominal values
As at March 31, 2018
(€ mn) FY 17 Q1 18Gross indebtedness 4,090 4,456Cash 1,882 2,289Net indebtedness 2,048 1,984Available credit lines 3,687 3,599Total liquidity 5,568 5,888
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 7
![Page 8: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/8.jpg)
1) Outlook 2018Market Outlook
Commercial Vehicle2 Production (k units)
Commercial Vehicle Replacement3 Tire Market (mn units)
PC & LT1 Production (mn units)
PC & LT1 Replacement Tire Market (mn units)
Worldwide productionto increase morethan 1%
Worldwide productionto decrease by 1%
Worldwide replace-ment tire market toincrease by 3%
Worldwide replace-ment market toincrease by 2%
IHS andown estimates
LMC andown estimates
IHS andown estimates
LMC andown estimates
2017 2018E Chg.Europe 22.1 22.5 +2%North America 17.1 16.8 -2%South America 3.3 3.6 +8%Asia 51.5 52.5 +2%
2017 2018E Chg.Europe 660 673 +2%North America 513 559 +9%South America 102 112 +10%Asia 2,140 2,033 -5%
2017 2018E Chg.Europe 351 358 +2%North America 285 290 +2%South America 73 76 +4%Asia 453 475 +5%
2017 2018E Chg.Europe 25.3 25.8 +2%North America 24.5 25.3 +3%South America 15.7 16.4 +5%Asia 89.2 91.0 +2%
1 Passenger cars and light trucks <6t2 Medium and heavy vehicles >6t3 Radial and bias
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 8
![Page 9: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/9.jpg)
1) Outlook 2018Continental Corporation
2017 2018E (as of May 8, 2018)
Consolidated salesadj. EBIT1 margin
€44.0 bn10.9 %
To increase to ~€47 bn at constant FX rates>10% adj. EBIT1 margin
Automotive Groupadj. EBIT1
€26.6 bn€2.2 bn
To increase to ~€28.5 bn at constant FX rates~8.5% adj. EBIT1 margin
Rubber Groupadj. EBIT1
€17.5 bn€2.6 bn
To increase to ~€18.5 bn at constant FX rates>14% adj. EBIT1 margin
Raw materials cost impact More than €450 mnfor the Rubber Group
Raw materials to have limited impact on Rubber Groupbased on current estimates
Special effects -€14 mn -€100 mnFinancial resultTax rate
-€187 mn at constant FX2
29%<-€180 mn at constant FX rates<30%
CapexPPA amortization
€2.9 bn€171 mn
Capex at around 7% of sales~€180 mn
Free cash flow before acquisitions €2.3 bn ~€2 bn
1 Before amortization of intangibles from PPA, consolidation and special effects2 Before effects of currency translation and effects from changes in the fair value of derivative instruments, and other valuat ion effects
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 9
![Page 10: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/10.jpg)
2) Trends in the Sector of the Automotive GroupNew Business Opportunities Arise
› Revenue pool for suppliers reached more than €1 trnin 2017
› Business related to “established” business will grow by~1% p.a. and reach ~€1.1 trn in 2025
› Revenues share of Electrification1, Automated Drivingand Holistic Connectivity represented in total <3% in2017
› Revenue share of Electrification1, Automated Drivingand Holistic Connectivity will grow by ~30% p.a. to>€200 bn in 2025
› It will account for ~15% of the overall supplier revenuemarket by 2025
Sources: Roland Berger and Continental estimates. FX rate assumption 1.13 EUR/USD.1 Not including market for electric vehicle batteries but including hybrid solutions.
0
250
500
750
1,000
1,250
1,500
2017 2025
New Business OpportunitiesEstablished Business
30% p.a.
1% p.a.
Global Supplier Revenue Pool (bn €)
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 10
![Page 11: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/11.jpg)
2) Trends in the Sector of the Automotive GroupFour ACES1 Will Drive Our Growth
1) Four ACES: autonomous, connected, electrified and shared mobility2) Total Addressable Market3) Not including market for batteries but hybrid solutions4) McKinsey estimates a market for digital services of US70$ - 110 billion in 2025;
FX rate assumption of 1.13 EUR/USD
ElectrificationAutomated Driving Holistic Connectivity
TAM2 in bn €3TAM2 in bn € TAM2 in bn €4
Shared MobilitySources: McKinsey and Continental estimates
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 11
![Page 12: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/12.jpg)
2) Trends in the Sector of the Automotive GroupThe Most Digitalized Portfolio in The Supplier Sector1
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
ContinentalAutomotive
Today: Electronics/Sensors/SW products as % of sales Continental 2025: Electronics/Sensors/SW products as % of sales
Source: Company filings and Continental estimates. 1 Suppliers >€3 bn sales.dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 12
![Page 13: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/13.jpg)
2) Trends in the Sector of the Automotive GroupApproaching Automated Driving: Three-Layer Model
1 Source: Continental estimates.
Market for Automated Driving~€35 bn1 by 2025
Recent additions to the portfolio(incl. cooperations and JVs)
Components
System
Environmental Model
~€26 bn1
~€7 bn1
~€2 bn1
Sensors
ElectronicsSoftwareIntegration
SoftwareElectronics
BMW/Intel platform
NTT DocomoBaidu
easyMile
HUAWEI
solid-stateflash lidar ADCU
NVIDIA
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 13
![Page 14: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/14.jpg)
2) Trends in the Sector of the Automotive GroupFrom Very Specific ECU Design to High Performance Computing
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations
› High number of embedded ECU’s
› Several domains
› Very specific ECU design
Past
Specific ECU Design
Past
Specific ECU Design
› High standardization
› Reduced HW variance
› HW plug & play if additional resources are needed
› Safety through redundancies
Tomorrow
Server Design
Tomorrow
Server Design
› Increased functionality
› High performance computing
› HW & SW separation
› Less embedded ECU’s, domains
Today
Domain Design
Today
Domain Design
e.g.Powertrain
e.g.Body/Gatewa
y
e.g.Cockpit
e.g.Autom. Drive
14
![Page 15: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/15.jpg)
2) Trends in the Sector of the Automotive GroupStrong Order Intake Drives Sustainable Growth…
Automotive Group: Strong Order Intake (bn €)
1 Lifetime Sales
1
20.0 20.923.6 24.5
26.628.5 >30
2630 30
35
40
2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
Automotive Group Sales Order Intake (LTS)
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 15
![Page 16: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/16.jpg)
2) Trends in the Sector of the Automotive Group… but Causes Sustained High R&D and Capex
1,47
5
1,58
9
1,83
6
2,09
7
2,43
1
2,67
6
7.6% 7.9% 8.8%
8.9% 9.9%
10.1
%
2012
2013
2014
2015
2016
2017
2018
E
2019
E
2020
E
2021
E
2022
E
R&D expenditure (€ mn) R&D as percentage of sales
1,03
6
1,01
6
1,12
6
1,27
5
1,49
7 1,79
0
5.3%
5.1%
5.4%
5.4%
6.1% 6.7%
2012
2013
2014
2015
2016
2017
2018
E
2019
E
2020
E
2021
E
2022
E
Capex (€ mn) Capex ratio
Automotive Group R&D (€ mn) Automotive Group Capex (€ mn)
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 16
![Page 17: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/17.jpg)
3) Trends in the Sector of the Rubber GroupTires Division: Four ACES Will Reduce Costs per Mile Traveled
Shared Mobility
AutomatedMobility
Electrification
Connectivity
› Higher utilization of car park› Lower cost per mile traveled
› Results in greater access to mobility
Better safety
Fuel efficiency
Economies of scale
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 17
![Page 18: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/18.jpg)
3) Trends in the Sector of the Rubber GroupTires Division: Greater Access to Mobility for a Growing World Population
Increased global mobilityGrowth of global population More miles traveledWorld population Miles per capita Global miles traveled
2015 2020 20252015 2020 2025
Sources: Continental, World Bank, Morgan Stanley, Roland Berger
2015 2020 20252015 2020 20252015 2020 2025
63%
37% 43%53%
47%57%
2015 2020 2025
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 18
![Page 19: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/19.jpg)
3) Trends in the Sector of the Rubber GroupTires Division: Strategy 2025 – Globalize Growth (mn units)1
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 19
![Page 20: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/20.jpg)
3) Trends in the Sector of the Rubber GroupContiTech Division: Relevant Markets and Growth Opportunities
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 20
![Page 21: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/21.jpg)
3) Trends in the Sector of the Rubber GroupContiTech Division: Unveiling the Power of Digitalization
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 21
![Page 22: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/22.jpg)
2005 2010 2015 2020E 2025ERubber sales (€ bn) Automotive sales (€ bn) Automotive sales ACES (€ bn)
2005-2010: 3% 2010-2015: 4% 2015-2020E: 1-2%Global PC & LT2
Production CAGR
RubberGroup
AutomotiveGroup
19%
12%
21%
>20%
14
26
39
>50
1 ACES: Automated Driving, Connectivity, Electrification and Shared Mobility2 Passenger car and light truck
1
Return on capital employed (ROCE)
4) Continental Strategy – Outlook 2020 and Beyond2020E: Sales Exceed €50 bn and ROCE More Than 20%
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 22
![Page 23: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/23.jpg)
23
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 23
![Page 24: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/24.jpg)
Disclaimer
› This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the dbAccess Berlin Conference in Berlin on June 7, 2018. It has not beenindependently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG or anysubsidiary and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or othersecurities whatsoever.
› Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arisefrom any use of this presentation or its contents or otherwise arising in connection with this presentation.
› This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding futuredevelopments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to themanagement of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of newinformation or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic as of the datethey are made, no guarantee can be given that the expected developments and effects will actually occur. Many factors may cause the actual development to be materially differentfrom the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations in currencyexchange rates or interest rates, the introduction of competing products, the lack of acceptance for new products or services and changes in business strategy.
› All statements with regard to markets or market position(s) of Continental or any of its competitors are estimates of Continental based on data available to Continental. Such data areneither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be an accurate orproper definition of regional and/or product markets or market shares of Continental and any of the participants in any market.
› Unless otherwise stated, all amounts are shown in millions of euro. Please note that differences may arise as a result of the use of rounded amounts and percentages.
› Note: Due to the application of the modified retrospective approach during first time adoption of IFRS 9, Financial Instruments, and IFRS 15, Revenues from Contracts withCustomers, as at January 1, 2018, all the figures from comparative periods are shown unadjusted.
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 24
![Page 25: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/25.jpg)
ContinentalShare Data/ADR Data
Share Data
Type of share No-par value share
Bloomberg Ticker CON
Reuters Ticker CONG
German Security Identification Number (WKN) 543 900
ISIN DE0005439004
Shares outstanding as at March 31, 2018 200,005,983
ADR Data
Ratio 1:5 (ordinary share : ADRs)
Bloomberg Ticker CTTAY
Reuters Ticker CTTAY.PK
ISIN US2107712000
ADR Level Level 1
Exchange OTC
Sponsor Deutsche Bank Trust Company Americas
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 25
![Page 26: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/26.jpg)
ContinentalBond Data
Issuer Continental AG ContinentalRubber of America, Corp.1 Continental AG Continental AG
Issue Senior Notes Senior Notes Senior Notes Senior Notes
Principal amount €750 mn €500 mn €600 mn €750 mn
Offering price 98.950% 99.739% 99.410% 99.228%
Rating at issuance dateBa2 (Moody’s4)BB (S&P)BB (Fitch2)
BBB (S&P)BBB (Fitch)
BBB+ (S&P)BBB+ (Fitch)
Ba1 (Moody’s4)BB (S&P)BBB (Fitch2)
Current corporation andbond ratings3 BBB+ (Fitch), BBB+ (S&P), Baa1 (Moody’s4)
Coupon 3.0% p.a. 0.5% p.a. 0.0% p.a. 3.125% p.a.
Issue date July 16, 2013 November 19, 2015 December 5, 2016 September 9, 2013
Maturity July 16, 2018 February 19, 2019 February 5, 2020 September 9, 2020
Interest payment Semi annualJanuary 16/July 16
AnnualFebruary 19,Commenced February 20, 2017
Not applicable AnnualSeptember 9
WKN A1X24V A1Z7C3 A2DARM A1X3B7
ISIN XS0953199634 DE000A1Z7C39 XS1529561182 XS0969344083
Denomination €1,000 with minimum tradable amount €1,000
1 Guaranteed by Continental AG2 Non-contracted rating at date of issuance3 Fitch since October 24, 2016; S&P since May 11, 2016; Moodyʼs since June 30, 20154 Non-contracted rating since February 1, 2014
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 26
![Page 27: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/27.jpg)
BBB+ / Baa1
BBB / Baa2
BBB- / Baa3
BB+ / Ba1
BB / Ba2
BB- / Ba3
B+ / B1
B / B2
S&P, Fitch / Moody’s Standard & Poor’s1 Moody’s2 Fitch3
BeforeSiemens VDON
on-In
vest
men
tG
rade
Inve
stm
ent
Gra
de
1 Contracted rating since May 19, 2000.2 Non-contracted rating since February 1, 2014.3 Contracted rating since November 7, 2013.
ContinentalCredit Rating
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 27
![Page 28: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/28.jpg)
ContinentalFinancial Calendar
2018Preliminary figures for fiscal 2017 January 9, 2018
Annual Financial Press Conference March 8, 2018
Annual Shareholders’ Meeting (incl. key data for Q1 2018) April 27, 2018
Q1 Financial Report May 8, 2018
Half-Year Financial Report August 2, 2018
Nine-Month Financial Report November 8, 2018
2019Preliminary figures for fiscal 2018 January 2019
Annual Financial Press Conference March 2019
Annual Shareholders’ Meeting (incl. key data for Q1 2019) April 26, 2019
Q1 Financial Report May 2019
Half-Year Financial Report August 2019
Nine-Month Financial Report November 2019
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 28
![Page 29: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/29.jpg)
ReferencesUseful Links
Continental Investor Relations website www.continental-ir.com
Annual and interim reports www.continental-corporation.com/en/investors/reports
2017 Fact Book (Investor presentation) www.continental-corporation.com/en/investors/reports
Investor Relationsevents and presentations
www.continental-corporation.com/en/investors/events/presentations
Sustainability at Continental(presentations for investors)
www.continental-corporation.com/en/sustainability/downloads
Corporate Social Responsibility www.continental-sustainability.com
Corporate Governance Principles www.continental-corporation.com/en/company/corporate-governance/principles-and-declarations
Continental shares www.continental-corporation.com/en/investors/share
Continental bonds and rating www.continental-corporation.com/en/investors/debt-and-rating
Continental IR on Twitter www.twitter.com/Continental_IR
dbAccess Berlin Conference 2018Berlin, June 7, 2018EDMR - Equity and Debt Market Relations 29
![Page 30: Driving the Future of Mobility - Continental USA · 7/6/2018 · Agenda 4 Continental Strategy – Outlook 2020 and Beyond 22 1 Results Q1 2018 and Outlook 2018 3 2 Trends in the](https://reader031.vdocuments.mx/reader031/viewer/2022011907/5f4d47f175a24a2f000c6a7b/html5/thumbnails/30.jpg)
ContactEquity and Debt Markets Relations
Vahrenwalder Str. 930165 HanoverGermany
e-mail: [email protected]: +49 511 938 1080www.continental-ir.com
Michael SaemannAnalysts, Institutional Investors andSustainability Investors
Phone: +49 511 938 1307e-mail: [email protected]
Marvin KalberlahAnalysts, Institutional Investors andSocial Media
Phone: +49 511 938 14034e-mail: [email protected]
Christopher MackeAnalysts and Institutional Investors
Phone: +49 511 938 1062e-mail: [email protected]
Klaus PaeslerAnalysts, Institutional Investors, ADRand Private Investors
Phone: +49 511 938 1316e-mail: [email protected]
Sabine ReeseSustainability, ASM, CMDOrganization, IR Website, CapitalMarket Disclosure Requirements
Phone: +49 511 938 1027e-mail: [email protected]
Rolf WollerHead of IR
Phone: +49 511 938 1068e-mail: [email protected]
Jana CrossAssistant to the Head of IRRoadshow and Conference Organization
Phone: +49 511 938 1163e-mail: [email protected]